Tata Steel agrees to offer £550 mn for UK pension deal

Tata Steel agrees to offer £550 mn for UK pension deal

17/05/2017 14:05

Tata Steel has taken a leap forward for securing the future of its UK operations – including the Port Talbot works in south Wales –by agreeing to pay £550 million to close long pending pension deal, which will also clear the road for merger of Tata Steel’s British and European steel assets with those of Germany-based ThyssenKrupp.

Tata Steel said that it would pump £550 million and a 33 per cent stake in the UK subsidiary to the retirement fund. However, the deal is subject to formal approval by The Pensions Regulator, but Tata said it expected to get the approval shortly.

“After prolonged and intense discussions and negotiations with the BSPS Trustee, the Pensions Regulator (TPR) and the Pension Protection Fund (PPF), the key commercial terms of a Regulated Apportionment Arrangement (RAA) have been agreed in principle between Tata Steel UK Limited (TSUK) and the BSPS Trustee. These terms are in line with the published principles of TPR and PPF,” said Tata Steel in a filing to the Bombay Stock Exchange.

“If agreement is reached and the necessary approvals are obtained, the RAA will become effective once agreed conditions are satisfied, including the payment by a member of the Tata Steel group of an agreed settlement amount of GBP 550 million to the BSPS and the provision of a 33 per cent equity stake in TSUK,” it added.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s